50 lenders offering average mortgage rates at $50 a day

50 lenders offering average mortgage rates at $50 a day
50 lenders offering average mortgage rates at $50 a day

There are now 50 lenders offering a total of 126 home loans under two per cent.

For the average $400,000 home loan paying down principal and interest, a rate under two per cent brings the cost of mortgage repayments down to less than $50 a day.

That's compared to a $59 a day cost to two years ago, when the lowest mortgage rate was 3.44 per cent according to RateCity.com.au.

The RBA cuts over the last two years, which takes the lowest rate down to 1.77 per cent, sees the average mortgage holder save $12 a day on their home loan, which is around $360 a month and $4,380 a year.

 

 50 lenders offering average mortgage rates at  a day 

There are 50 lenders now offering a total of 126 home loan under two per cent, 40 per cent of the 124 lenders on the RateCity.com.au database with at least one home loan rate starting with a ‘1’.

There were 11 lenders with rates under 2 per cent right before the November 3 RBA cut. Since then, the list has more than quadrupled.

RateCity.com.au research director Sally Tindall said home loan rates under two per cent were becoming the new norm. 

‘At the start of this month a rate under two per cent was as rare as hens’ teeth. Today there’s well over 100 of them," Tindall said.

“Record low interest rates have supercharged people’s borrowing power. As a result, some first home buyers are finally finding themselves in contention at open homes and auctions."

The latest ABS lending finance figures show there was a 51% increase in the number of first home buyer loans over the last year in original terms.

“The formula of record low rates and government grants seems to have hit the sweet spot for many first home buyers. They’re finally enjoying their time in the sun," Tindall added.

“Two years ago, the lowest variable rate was 3.44 per cent. Today its 1.77 per cent and it’s not just the low-cost lenders that have moved. The whole market has been forced to follow behind them.

“Just last year, owner occupiers with a rate in the threes probably thought they had a cracking deal. Today, you’d be pretty mortified with that."

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

Tags: 
Interest Rates Ratecity.com.au

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